The Q4 data has been published and it is encouraging to see that the UK met the plastic and aluminium individual recycling target in what was an extremely volatile year with prices.
The table below presents the recently released data:
The data also showed the “carry in” tonnages for 2020, PRNs generated in December which can be used for the following compliance year.
The data below shows the forecasted 2020 UK obligation along with the carry in tonnages.
What does the data mean for producers?
Here we take a look at each material to see how the most recent data impacts producers:
The impact of high PRN prices seen in 2019 is positively impacting the supply of material, unfortunately the effect of the Coronavirus is negatively impacting the movement of material. There is a lack of availability of shipping containers and the shipping lines are taking advantage of this and increasing the cost of containers. There is a risk that there will be a short-term increase in the price of the PRN.
The 2019 recycling and recovery data shows a positive increase in the carry over of PRNs into 2020, which has taken a bit of pressure out of the market for Q1. The material prices remain low and shipping costs are affecting this market.
The high price seen at the end of last year has positively impacted the number of aluminium cans exported at the end of 2019. Until the 2020 obligation is released this material remains a medium risk material.
There has been a slowdown in the amount of glass recycled this year and glass aggregate tonnages have seen a further drop in processing which causes some concerns. Caution needs to be applied to this material and we may see an increase in prices to support the market.
Wood has performed well against the material targets and as a result we have seen prices soften for the last few months.
The continued slowdown of can recycling in the UK remains a concern for the compliance market. We should see a fairly strong carry out of PRNs into 2020 which will give the UK a good starting position for next year.
Ecosurety will continue to communicate the changes in the PRN market throughout the year and the impact on producers. If you would like to speak to a member of the Ecosurety team about the impact of compliance on your business, please contact us on 0333 4330 370.
Sandeep joined the procurement team in April 2019 and works in the role of procurement specialist. Sandeep builds and maintains strategic relationships with our key service partners, whilst creating new relationships and initiatives to improve UK recycling.